RAPAPORT… Trans Hex Group’s sale of its Lower Orange River (LOR)
project has brought the South African diamond miner back to profitability.
Company profit came to ZAR 52 million ($3.6 million) for the
first fiscal half ending September 30 versus a loss of ZAR 199.2 million ($13.8
million) during the same period last year, Trans Hex said Thursday.
In April,
Trans Hex agreed to sell the loss-making project, which includes the Baken and
Bloeddrif mines, to Lower Orange River Diamonds. The South Africa
deposits had
been on care and maintenance for a large part of the company’s financial year,
which ended March 31.
Without the income from the sale of LOR, the miner would have
recorded a loss of ZAR 26.8 million ($1.9 million).
Sales at Trans Hex’s continuing operations, which include
West Coast Resources in South Africa and Somiluana in Angola, more than tripled
to ZAR 136.2 million ($9.5 million).
Image: Rough diamonds.
Asset Sale Puts Trans Hex Back in Black
The Bottom Line
- Trans Hex reported a profit of ZAR 52 million ($3.6 million) for the half-year ending September 30, compared to a loss of ZAR 199.2 million ($13.8 million) the previous year.
- The sale of the Lower Orange River project, including the Baken and Bloeddrif mines, to Lower Orange River Diamonds was key to the turnaround.
- Sales from ongoing operations in South Africa and Angola tripled to ZAR 136.2 million ($9.5 million) despite the LOR deposits being on care and maintenance for much of the fiscal year.
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